What does a leasing rate insurance cover?
Leasing rate insurances protect and facilitate the payment of the leasing rates in situations where the customer can no longer pay due to unforeseen circumstances.
Most insurances help with the payments of the leasing rates or offer to fully pay the leasing rates in cases of sudden job-loss/unemployment, illnesses, accidents, or death. If these situations occur, a certain number of leasing rates are covered up to a total amount, for example a max. of 27 months of leasing rates that do not go above CHF 65’000 cumulatively.
Insurances will want minimal risk and require proof that the individual taking out the insurance has:
- stable employment and a good employment history (to ensure the person is not currently in a situation where they are bound to lose their job) and
- a good medical record and have not had a longer hospital stay in the recent past (to make sure the customer is not currently going through a health crisis).
Every leasing rate insurance provider defines their coverage differently. It is vital to be sure what is covered before taking out this kind of insurance.